Petrobras to borrow up to $400M to support procurement from UK suppliers

Brazilian state-owned giant Petrobras has signed a financing agreement with a French bank and a UK export credit agency for up to $400 million as part of its four-year business plan.

Petrobras last Thursday signed, through its subsidiary Petrobras Global Trading B.V. – PGT, a finance agreement of up to $400 million with Credit Agricole Corporate and Investment Bank (CACIB) with a guarantee from the UK Export Finance (UKEF).

The maturity is 2029 and the funds will support procurement from UK suppliers on Petrobras projects, the Brazilian company explained.

The agreement is in accordance with Petrobras liabilities management strategy, which aims to improve its amortization profile and reduce cost, taking into account the deleveraging goal set forth in its 2018-2022 Business and Management Plan.

In related news, Moody’s agency recently raised Petrobras’ corporate debt rating from Ba3 to Ba2, keeping the outlook stable. The review of Petrobras’ rating reflected the improvement of the perspective of the sovereign rating of Brazil, from negative to stable.

Additionally, the agency pointed out that the change in the risk classification was the result of the continuous process of improving the company’s liquidity profile, reducing the leverage and debt portfolio management strategy, giving more security to the fulfilling of its obligations.

Source: Offshore Energy Today